Legally Femtech
The Legally Femtech podcast, sponsored by Nixon Gwilt Law, empowers femtech companies, creators, investors, and users to revolutionize women's health by providing practical, legal, and ethical insights into the healthcare startup community. Your host, Bethany Corbin, is a healthcare innovation and femtech attorney with almost a decade of experience. She is on a mission to help thought-leading companies disrupt and transform the global women's health sector. In each episode, Bethany discusses critical issues that impact women's health and offers invaluable tips for entrepreneurs looking to launch their own femtech products. With an exciting lineup of international guest speakers, Legally Femtech delves into the lifecycle of digital health startups - from idea conception to product design to fundraising, scaling, and exiting (and all of the legal considerations in between!). Tune in every other Wednesday for new episodes!
Legally Femtech
FemTech Startup Advice with Dr. Brittany Barreto (Part 2)
In this episode, Bethany Corbin and Brittany Barreto discuss:
- How to Empower your position in a founder-investor relationship
- How a convertible note and a safe are different
- What five terms you need to get familiar with in regard to convertible notes
- How to push back and set your own terms
Key Takeaways:
- As a founder, you have power in the founder-investor relationship. Usually, you’ll know more than investors do, so don’t be afraid to provide value. See them as partners and not merely as a lender of money.
- There are a couple of differences between a safe and a convertible note. First, there’s no interest in a safe because it’s not a loan while there is on convertible notes since they are a loan. They also differ when they convert into equity. For safes, it’s when you raise your price equity round and for convertible notes, it’s when you hit your qualified financing amount. Lastly, you can do a rolling basis of fundraising on a safe.
- Here are the five terms you need to get familiar with in regard to convertible notes: maturity date, qualified financing, discount, interest, and valuation cap.
- Be confident. Don’t be afraid to push back if a question doesn’t make sense and don’t wait for an investor to set the terms. Set your own terms and negotiate them.
“You set your terms and then you can go out and negotiate them. You don't have to sit back and wait for an investor to tell you what you're worth.” - Brittany Barreto
Connect with Dr. Brittany Barreto:
Website: https://drbrittanybarreto.com/
LinkedIn: https://www.linkedin.com/in/brittanybarreto/
Connect with Bethany Corbin:
Website: https://nixongwiltlaw.com/